TLDR
- SpaceX and xAI selected for Pentagon’s $100 million autonomous drone technology competition
- Six-month contest launched January 2026 to develop voice-command systems for multiple drones
- SpaceX acquired xAI before entering competition and ahead of planned IPO
- Musk previously advocated against autonomous weapons in 2015 open letter
- Defense Department pushing for faster drone development and improved security measures
SpaceX and its subsidiary xAI are participating in a Defense Department competition for autonomous drone technology. The contest seeks voice-controlled systems that can manage multiple unmanned aircraft.
The Pentagon launched the $100 million prize challenge in January 2026. A select group of companies received invitations to the classified program.
People familiar with the matter confirmed SpaceX’s participation. The Defense Innovation Unit has not issued public statements about the competition.
The six-month challenge requires building technology that translates voice commands into drone operations. Systems must control several aircraft simultaneously through spoken instructions.
SpaceX finalized its xAI acquisition before joining the contest. The merger brought together Musk’s aerospace firm and his AI startup.
The transaction completed ahead of SpaceX’s anticipated public offering in 2026. The Texas-based company already holds multiple defense contracts.
Pentagon Advances Drone Development Strategy
The Defense Secretary revealed plans last year to accelerate drone programs. The initiative targets bureaucratic reduction and domestic manufacturing expansion.
Military officials want quicker deployment of unmanned aircraft systems. The approach shortens development cycles for new drone technologies.
Defense planners are improving countermeasures against unauthorized drones. Security concerns have grown around airports and major public events.
The FIFA World Cup and America250 anniversary events occur this summer. Officials aim to have upgraded drone defenses operational before these gatherings.
Shift from Previous Weapons Stance
Musk signed a 2015 open letter with other tech leaders about autonomous weapons. The document urged global bans on AI-powered offensive military systems.
The letter rejected the development of automated killing tools. Participants warned about artificial intelligence in combat scenarios.
SpaceX’s competition entry marks a change from that earlier position. The company has worked with defense agencies for years.
xAI operated as a SpaceX subsidiary before the official merger. The consolidation placed both companies under single ownership.
AI Companies Win Defense Contracts
Four AI firms secured Pentagon agreements in 2025. OpenAI, Google, Anthropic, and xAI received contracts valued at up to $200 million each.
These deals support AI adoption across military operations. The Defense Department wants expanded AI capabilities throughout its branches.
The contracts cover various artificial intelligence uses. Specific terms remain protected under defense procurement protocols.
The drone competition operates independently from these contracts. Prize money will be distributed among winning participants.
Technical Competition Requirements
Contestants must create swarming technology for the challenge. Systems need natural language processing and multi-drone coordination capabilities.
The technology must understand spoken commands precisely. It then distributes instructions across multiple unmanned aircraft.
Companies have six months to produce functional prototypes. Judging standards and evaluation processes remain undisclosed.
The contest aims to enhance military drone operations through private sector innovation. Selected participants are working under confidential development agreements.
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